ADB approved $300 million loan to develop Rajasthan’s secondary towns

The Asian Development Bank (ADB) has approved a 300 million dollar (about Rs 2,200 crore) loan to develop the inclusive water supply, sanitation infrastructure and services in secondary towns of Rajasthan.

Key Facts

  • The project will improved water supply services for about 5.7 lakh people.
  • It will enhance sanitation services for about 7.2 lakh people in at least 14 secondary towns.
  • Secondary towns means the localities have 20,000 to one lakh residents.
  •  Water supply systems in at least eight project towns will  improve by 2027 with the implementation of the project.
  • One lakh households including the urban poor households will from 5 new or rehabilitated water treatment plants and 1,350 km of distribution networks.
  • Under the project, Citywide sanitation systems will be developed which will be based on the most cost-effective solutions.
  • The project will be built on three related projects which were started earlier and sector reforms funded by ADB in Rajasthan.

Significance of the project

  1. The project will strengthen the institutional capacity of local governments and Rajasthan Urban Drinking Water and Sewerage.
  2.  It will set up a Infrastructure Corporation Ltd which is a corporate entity established with the support of ADB.
  3. The project will provide support to women and vulnerable groups by providing them skills training, paid internships, community engagement and awareness activities.
  4. Partnership with ADB will ensure a long term policy dialogue to deepen the financial sustainability and institutional strengthening in local government.
  5. It will also introduce new good practices and technological supports. It will further ensure that the project incorporates practical lessons, innovations, use of smart technologies and a cost-effective system.

The Rajasthan government has implemented two multi-sector urban investment projects supported by ADB since 2000. The projects has benefited more than 70 lakh people in 21 cities. The current project is the third project under the   “Rajasthan Urban Sector Development Programme” to implement the water supply and sanitation drives in six major cities.